USD index got as high as 76.25 overnight and now stands at 76.02 it is firmly above the 50dma immediate term bullish but the long-term trend is down. The dollar continues to strengthen due to lack of talk of QE. As I have spoken about this before every body in the media has been talking about inflation and debt so the Fed will have to make people pay, show them where we'd be without QE (teach us a lesson so to speak). You see that the SPX has sold off hard everyday prior to Bullard's talk yesterday. I don't think the dollar will break below the 50dma until summer's end when I expect the SPX will be around it's 150dma or at the 200dma.
The black chart is the UUP ETF of the dollar, shows a minor break of the up move, may head down a percent or two over the next couple or three days. |
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